#1 Types of Candlestick

Candlestick is the pattern used in the forex chart. It was first introduced by Japan country over 100 years ago where it has been used to analyze the rice market. Nowadays it has been widely used even to analyze forex market. 

By using this technique we can understand the circumstances of forex market.By looking at Candlestick patterns we can predict the early signs of market direction whether it is reversal or inversion.

Here are some important Candlestick patterns and tips that trader has to know:

1. Morubozu

2. Spinning Tops

3. Doji

4. Hammer & Hanging Man

5. Shooting Star/Evening Star

Morubozu

Marubozu bar is full body with no shadow. Usually predict the initial indications that the trend will continuously occur.

Spinning tops

Spinning tops occurs when the body is shorter than the shadow in the midst. Shorter body shows a little price movement occurs from open to close, while shadow shows the currency’s price moving up and down during the session. Usually when spinning tops occurs after a long bar, it had the potential that the changes of trend will occur.

Hammer and Hanging Man

Hammer and Hanging Man can also be an indicator of direction trend reversal as shown in the picture below, this indicator also should be ascertained with bar going after it. Hammer and Hanging Man occur when shadow is longer than body.

Doji

Doji occurs when open price is same with close price so that the body only shows a line.

Shooting Star/Evening Star